19 January 2022

Working Paper no. 88: Analysing inflation dynamics in Iceland using a Bayesian structural vector autoregression model

The Central Bank of Iceland has published a research paper which looks at the drivers of inflation variation in Iceland using a Bayesian structural vector autoregression model. The results are that supply shocks and exchange rate shocks are the largest contributors in short run dynamics of inflation while foreign shocks dominate the medium and long run horizons. The results strongly suggest that local currency pricing is largely absent.

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17 January 2022

Foreign exchange market, exchange rate developments, and international reserves 2021

The Central bank of Iceland has published a press release on foreign exchange market, exchange rate developments, and international reserves 2021.

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17 January 2022

Monetary Policy Committee report to Parliament

The Central Bank of Iceland Monetary Policy Committee’s (MPC) report to Parliament (Alþingi) on the Committee’s work in H2/2021 has been posted on the Bank’s website.

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14 January 2022

The Central Bank of Iceland published today three press releases related to its counterparties transactions

The Central Bank of Iceland published today three press releases related to its counterparties transactions: Opening of liquidity window and discontinuation of special temporary collateralised loan facility due to COVID-19; Seven-day term deposits to be redeemable; and Amendments to Rules on Current Accounts.

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14 January 2022

Amendments to Rules on Current Accounts

The Rules on Current Accounts in the Central Bank of Iceland, no. 540/2007, have been amended and reissued as Rules no. 18/2022. The main substantive amendments pertain to financial institutions’ establishment and use of current accounts with the Bank. Other changes follow from regulatory and statutory amendments that have been made since the adoption of the previous version of the Rules.

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